Wrap Text
Production Report for the fourth quarter ended 31 December 2021
Anglo American plc (the "Company")
Registered office: 17 Charterhouse Street London EC1N 6RA United Kingdom
Registered number: 3564138 (incorporated in England and Wales)
Legal Entity Identifier: 549300S9XF92D1X8ME43
ISIN: GBOOB1XZS820
JSE Share Code: AGL
NSX Share Code: ANM
NEWS RELEASE
27 January 2022
Production Report for the fourth quarter ended 31 December 2021
Mark Cutifani, Chief Executive of Anglo American, said: "Our production was broadly flat compared to Q4 of 2020, with
our operating levels at approximately 95%(1) of normal capacity through the year, largely due to the ongoing Covid
related effects on the operating environment. Production in the fourth quarter benefited from higher rough diamond
production at De Beers, a return to pre-Covid production levels at our open cut metallurgical coal mines and improved
mining performance at Amandelbult which resulted in higher metal in concentrate production from our PGMs business. At
our copper operations, Collahuasi's production increased as a result of strong plant performance and planned
maintenance in the comparable period of 2020.
"As we move into 2022, we are pleased with the construction progress at Quellaveco, our new copper mine in Peru. We
are on track and within budget, we mined our first ore in October 2021, and we are expecting our first production of
copper concentrate in the middle of this year. In the first quartile of the cost curve, we expect Quellaveco to produce
120,000-160,000 tonnes of copper production in 2022 and to average 300,000 tonnes per year for the first ten years at
full production."
Q4 2021 highlights
- Rough diamond production increased by 15%, principally from Jwaneng in Botswana as well as in Namibia, reflecting
planned higher production in response to strong consumer demand.
- Our Platinum Group Metals (PGMs) operations more than doubled refined production in the quarter, and resulted in a
record full year refined production of 5.1Moz. This has substantially reduced work-in-progress inventory, and resulted in
a 62% increase in co-product nickel production for the full year to 22,300 tonnes. Together with our primary nickel
output, group total nickel production reached 64,000 tonnes in 2021, a 12% increase year-on-year.
- Metallurgical coal production increased by 5%, reflecting an increase in production at the Dawson open cut operation,
partially offset by Moranbah which continues to be affected by areas of challenging geology.
- Our copper operations' full year production was in line with the prior year, mitigating the ongoing water challenges from
the severe drought conditions.
- Full year iron ore production increased by 3%, although lower in the quarter, despite unplanned maintenance at Minas-
Rio and third party rail performing below planned levels affecting Kumba's production for the year.
- Our 2021 Climate Change Report was published in October, setting out clear pathways to carbon neutral operations
by 2040 and our ambition to reduce Scope 3 emissions by 50%, also by 2040.
- Completed sale of our 33% interest in Cerrejon on 11 January 2022: final stage of our exit from thermal coal operations.
Production Q4 2021 Q4 2020 % vs. Q4 2020 2021 2020 % vs. 2020
Diamonds (Mct)(2) 7.7 6.7 15% 32.3 25.1 29%
Copper (kt)(3) 161 168 (4)% 647 647 0%
Platinum group metals (koz)(4) 1,103 1,076 3% 4,299 3,809 13%
Iron ore (Mt)(5) 15.1 16.2 (7)% 63.8 61.7 3%
Metallurgical coal (Mt) 4.4 4.2 5% 14.9 16.8 (11)%
Nickel (kt)(6) 10.6 11.7 (9)% 41.7 43.5 (4)%
Manganese ore (kt) 835 942 (11)% 3,683 3,520 5%
(1) Production capacity excludes Grosvenor. Q4 year-on-year copper equivalent production decreased 1%, this is normalised to reflect the
demerger of the South Africa thermal coal operations, the sale of our interest in Cerrejon and the closure of the manganese alloy operations.
(2) De Beers Group production is on a 100% basis, except for the Gahcho Kue joint venture which is on an attributable 51% basis.
(3) Contained metal basis. Reflects copper production from the Copper operations in Chile only (excludes copper production from the
Platinum Group Metals business unit).
(4) Produced ounces of metal in concentrate. 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold). Reflects own mine production and
purchase of concentrate.
(5) Wet basis.
(6) Reflects nickel production from the Nickel operations in Brazil only (excludes nickel production from the Platinum Group Metals business unit).
Production Outlook Summary
2022 production guidance is summarised as follows:
2022 production guidance(1)
Diamonds(2) 30-33 Mct
Copper(3) 680-760 kt
Platinum Group Metals(4) 4.1-4.5 Moz
Iron Ore(5) 63-67 Mt
Metallurgical Coal(6) 20-22 Mt
Nickel(7) 40-42 kt
(1) Subject to the extent of further Covid-19 related disruption.
(2) On a 100% basis, except for the Gahcho Kue joint venture, which is on an attributable 51% basis. Subject to trading conditions.
(3) On a contained-metal basis. Copper operations in Chile (560-600 kt) and Peru (120-160 kt). Copper Chile subject to water availability.
(4) 5E + gold produced metal in concentrate ounces. Includes own mined production (~65%) and purchased concentrate volumes (~35%). The split of metals
differs for own mined and purchased concentrate, refer to FY2019 results presentation slide 30 for indicative split of own mined volumes.
FY2022 metal in concentrate production is expected to be 1.9-2.1 million ounces of platinum, 1.3-1.4 million ounces of palladium and 0.9-1.0 million
ounces of other PGMs and gold.
(5) Wet basis. Iron ore operations at Minas-Rio in Brazil (24-26 Mt) and at Kumba (39-41 Mt) in South Africa. Kumba is subject to the third party rail
and port performance.
(6) Excludes thermal coal by-product from Australia. Subject to regulatory approval to restart the Grosvenor longwall mining operations.
(7) Nickel operations in Brazil only.
Realised Prices
H2 2021 vs. H1
FY 2021 FY 2020 H2 2021 H1 2021 2021 vs. 2020 2021
De Beers
Consolidated average realised price
($/ct)(1) 146 133 161 135 10% 19%
Average price index(2) 115 104 122 109 11% 12%
Copper (USc/lb)(3) 453 299 447 460 52% (3)%
Platinum Group Metals
Platinum (US$/oz)(4) 1,083 880 1,008 1,170 23% (14)%
Palladium (US$/oz)(4) 2,439 2,214 2,267 2,641 10% (14)%
Rhodium (US$/oz)(4) 19,613 10,628 16,019 24,377 85% (34)%
Basket price (US$/PGM oz)(5) 2,761 2,035 2,642 2,884 36% (8)%
Iron Ore - FOB prices(6) 157 111 106 210 41% (50)%
Kumba Export (US$/wmt)(7) 161 113 109 216 42% (50)%
Minas-Rio (US$/wmt)(8) 150 107 102 200 40% (49)%
Metallurgical Coal - HCC (US$/t)(9) 211 112 280 117 88% 139%
Nickel (USc/lb) 773 563 819 721 37% 14%
(1) Consolidated average realised price based on 100% selling value post-aggregation.
(2) Average of the De Beers price index for the Sights within the 12-month period. The De Beers price index is relative to 100 as at December 2006.
(3) The realised price for Copper excludes third party sales volumes.
(4) The realised price is excluding trading.
(5) Price for a basket of goods per PGM oz. The dollar basket price is the net sales revenue from all metals (PGMs, base metals and other metals),
excluding trading, per 5E + gold sold ounces (own mined and purchased concentrate).
(6) Average realised total iron ore price is a weighted average of the Kumba and Minas-Rio realised prices. The comparative has been restated as
Kumba previously reported on a dry basis.
(7) Average realised export basket price (FOB Saldanha) (wet basis as product is shipped with ~1.6% moisture). The comparative has been restated as
Kumba previously reported on a dry basis. The realised prices differ to Kumba's standalone results due to sales to other Group companies. FY average
realised export basket price (FOB Saldanha) on a dry basis is $164/t (2020: $115/t) and this was higher than the dry 62% Fe benchmark price of
$139/t (FOB South Africa, adjusted for freight).
(8) Average realised export basket price (FOB Acu) (wet basis as product is shipped with ~9% moisture).
(9) Weighted average coal sales price achieved at managed operations. Metallurgical Coal PCI (US$/t) FY 2021 was US$138/t and FY 2020 was US$84/t,
resulting in a 64% movement for the year. H2 2021 was US$150/t and H1 2021 was US$103/t, resulting in a 46% movement. Australian Thermal Coal by-product
(US$/t) FY 2021 was US$120/t and FY 2020 was US$58/t, resulting in a 107% movement for the year.H2 2021 was US$173/t and H1 2021 was US$87/t,
resulting in a 99% movement.
De Beers
Q4 2021 Q4 2021
De Beers(1) (000 carats) Q4 Q4 vs. Q3 vs. 2021 vs.
2021 2020 Q4 2020 2021 Q3 2021 2021 2020 2020
Botswana 5,236 4,263 23% 6,403 (18)% 22,326 16,559 35%
Namibia 392 337 16% 399 (2)% 1,467 1,448 1%
South Africa 1,292 1,287 0% 1,577 (18)% 5,306 3,771 41%
Canada 771 776 (1)% 797 (3)% 3,177 3,324 (4)%
Total carats recovered 7,691 6,663 15% 9,176 (16)% 32,276 25,102 29%
Rough diamond production increased by 15% to 7.7 million carats, reflecting planned higher production of rough
diamonds to meet continued strong levels of demand.
In Botswana, production increased by 23% to 5.2 million carats primarily as a result of the planned treatment of higher
grade ore at Jwaneng, partly offset by lower production at Orapa due to the planned closure of Plant 1 in late 2020.
Namibia production increased by 16% to 0.4 million carats reflecting a reduction in the scheduled maintenance time for
the marine fleet.
South Africa production was in line with the prior year at 1.3 million carats, as planned plant maintenance in Q4 2021 was
offset by processing of higher grade ore.
Production in Canada was broadly flat.
Demand for rough diamonds remained robust, with positive midstream sentiment and strong demand for diamond
jewellery continuing over the holiday period, particularly in the key US consumer market. Rough diamond sales totalled
7.7 million carats (7.2 million carats on a consolidated basis)(2) from three Sights, compared with 6.9 million carats (6.4
million carats on a consolidated basis)(2) from two Sights in Q4 2020, and 7.8 million carats (7.0 million carats on a
consolidated basis)(2) from two Sights in Q3 2021.
The full year consolidated average realised price increased by 10% to $146/ct (2020: $133/ct), primarily as a result of
positive market sentiment which gave rise to a strengthening of the rough price index.
2022 Guidance
Production guidance(1) for 2022 is 30-33 million carats (100% basis), subject to trading conditions and the extent of
further Covid-19 related disruptions.
(1) De Beers Group production is on a 100% basis, except for the Gahcho Kue joint venture which is on an attributable 51% basis.
(2) Consolidated sales volumes exclude De Beers Group's JV partners' 50% proportionate share of sales to entities outside De Beers Group from the
Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).
Q4 2021 Q4 2021
De Beers(1) Q4 Q3 Q2 Q1 Q4 vs. vs. 2021 vs.
2021 2021 2021 2021 2020 Q4 2020 Q3 2021 2021 2020 2020
Carats recovered (000 carats)
100% basis (unless stated)
Jwaneng 2,679 3,954 3,169 3,091 1,452 85% (32)% 12,893 7,538 71%
Orapa(2) 2,557 2,449 2,558 1,869 2,811 (9)% 4% 9,433 9,021 5%
Total Botswana 5,236 6,403 5,727 4,960 4,263 23% (18)% 22,326 16,559 35%
Debmarine Namibia 330 309 249 249 256 29% 7% 1,137 1,125 1%
Namdeb (land operations) 62 90 89 89 81 (23)% (31)% 330 323 2%
Total Namibia 392 399 338 338 337 16% (2)% 1,467 1,448 1%
Venetia 1,292 1,577 1,276 1,161 1,287 0% (18)% 5,306 3,771 41%
Total South Africa 1,292 1,577 1,276 1,161 1,287 0% (18)% 5,306 3,771 41%
Gahcho Kue (51% basis) 771 797 899 710 776 (1)% (3)% 3,177 3,324 (4)%
Total Canada 771 797 899 710 776 (1)% (3)% 3,177 3,324 (4)%
Total carats recovered 7,691 9,176 8,240 7,169 6,663 15% (16)% 32,276 25,102 29%
Sales volumes
Total sales volume (100)% (Mct)(3) 7.7 7.8 7.3(4) 13.5(4) 6.9 12% (1)% 36.3 22.7 60%
Consolidated sales volume (Mct)(3) 7.2 7.0 6.5(4) 12.7(4) 6.4 13% 3% 33.4 21.4 56%
Number of Sights (sales cycles) 3 2 2(4) 3(4) 2 10 9(5)
(1) De Beers Group production is on a 100% basis, except for the Gahcho Kue joint venture which is on an attributable 51% basis.
(2) Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and Damtshaa.
(3) Consolidated sales volumes exclude De Beers Group's JV partners' 50% proportionate share of sales to entities outside De Beers Group
from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).
(4) Due to ongoing travel restrictions and the timing of Sight 3 at the end of Q1 2021, the Sight event was extended beyond its normal week-long
duration. As a result, 0.2 Mct (total sales volume, 100% and consolidated basis) from Sight 3 were recognised in Q2 2021.
(5) Sight 3 in Q2 2020 was cancelled due to Covid-19 related restrictions on the movement of people and product.
Copper
Q4 2021 Q4 2021
Copper(1) (tonnes) Q4 Q4 vs. Q3 vs. 2021 vs.
2021 2020 Q4 2020 2021 Q3 2021 2021 2020 2020
Los Bronces 84,900 95,900 (11)% 79,600 7% 327,700 324,700 1%
Collahuasi (44% share) 66,000 59,200 11% 65,300 1% 277,200 276,900 0%
El Soldado 9,800 12,700 (23)% 11,600 (16)% 42,300 45,800 (8)%
Total Copper 160,700 167,800 (4)% 156,500 3% 647,200 647,400 0%
(1) Copper production shown on a contained metal basis. Reflects copper production from the Copper operations in Chile only (excludes copper production
from the Platinum Group Metals business unit).
Copper production in the fourth quarter decreased by 4% to 160,700 tonnes. Planned lower grades at Los Bronces were
partially offset by strong plant performance at Collahuasi.
Production from Los Bronces decreased by 11% to 84,900 tonnes due to planned lower grades (0.70% vs 0.77%) and
lower copper recovery (80.5% vs 83.6%).
At Collahuasi, attributable production increased by 11% to 66,000 tonnes driven by higher throughput as a result of
strong plant performance in the quarter and the planned maintenance in Q4 2020.
Production from El Soldado decreased by 23% to 9,800 tonnes due to lower grades (0.63% vs. 0.84%) in accordance
with the mine plan.
2021 sales volumes were 641,100 tonnes at an average realised price of 453c/lb, which is higher than the average LME
price of 423c/lb, reflecting the benefit of provisional pricing adjustments throughout the year. At 31 December, 162,361
tonnes of copper were provisionally priced at 442c/lb.
Chile?s central zone continues to face severe drought conditions. While production impacts during 2021 have been
mitigated by the successful implementation of water management initiatives, record low levels of precipitation during the
year have reduced water availability for Los Bronces in the first half of 2022 and have been factored into production
guidance.
2022 Guidance
Production guidance for 2022 is 680,000-760,000 tonnes, (Chile 560,000-600,000 tonnes; Peru 120,000-160,000
tonnes). Production is subject to the extent of further Covid-19 related disruptions and in Chile, to water availability.
Q4 2021 Q4 2021
Copper(1) Q4 Q3 Q2 Q1 Q4 vs. vs. 2021 vs.
2021 2021 2021 2021 2020 Q4 2020 Q3 2021 2021 2020 2020
Los Bronces mine(2)
Ore mined 11,056,800 10,512,600 11,403,100 10,812,400 11,546,300 (4)% 5% 43,784,900 39,211,300 12%
Ore processed - Sulphide 13,293,500 12,715,400 13,168,200 11,520,400 13,031,300 2% 5% 50,697,500 42,034,800 21%
Ore grade processed -
Sulphide (% TCu)(3) 0.70 0.70 0.68 0.72 0.77 (9)% 0% 0.70 0.81 (14)%
Production - Copper cathode 10,400 9,800 9,800 9,900 10,200 2% 6% 39,900 39,300 2%
Production - Copper in concentrate 74,500 69,800 74,600 68,900 85,700 (13)% 7% 287,800 285,400 1%
Total production 84,900 79,600 84,400 78,800 95,900 (11)% 7% 327,700 324,700 1%
(Anglo American share 44%)
Ore mined 23,940,600 30,327,200 26,943,000 21,220,300 18,110,000 32% (21)% 102,431,100 71,959,200 42%
Ore processed - Sulphide 13,979,000 12,926,400 14,334,300 14,441,600 12,928,700 8% 8% 55,681,300 55,831,600 0%
Ore grade processed -
Sulphide (% TCu)(3) 1.18 1.28 1.29 1.26 1.18 0% (8)% 1.25 1.24 1%
Production - Copper in concentrate 150,100 148,300 168,800 162,800 134,600 11% 1% 630,000 629,100 0%
Anglo American's 44% share of
copper production for Collahuasi 66,000 65,300 74,300 71,600 59,200 11% 1% 277,200 276,900 0%
El Soldado mine(2)
Ore mined 975,500 1,697,800 1,796,600 1,708,600 1,982,000 (51)% (43)% 6,178,500 7,160,500 (14)%
Ore processed - Sulphide 1,909,400 1,952,000 1,834,800 1,755,100 1,902,500 0% (2)% 7,451,300 6,921,700 8%
Ore grade processed -
Sulphide (% TCu)(3) 0.63 0.73 0.75 0.70 0.84 (25)% (14)% 0.73 0.84 (13)%
Production - Copper in concentrate 9,800 11,600 11,000 9,900 12,700 (23)% (16)% 42,300 45,800 (8)%
Chagres Smelter(2)
Ore smelted(4) 29,200 30,200 25,400 23,200 29,800 (2)% (3)% 108,000 111,600 (3)%
Production 28,400 29,200 24,600 22,600 29,000 (2)% (3)% 104,800 108,700 (4)%
Total copper production(5) 160,700 156,500 169,700 160,300 167,800 (4)% 3% 647,200 647,400 0%
Total payable copper production 154,100 150,100 162,600 154,300 161,200 (4)% 3% 621,100 622,400 0%
Total sales volumes 173,400 162,300 157,700 147,700 178,600 (3)% 7% 641,100 648,500 (1)%
Total payable sales volumes 166,200 153,900 149,200 143,200 172,600 (4)% 8% 612,500 623,000 (2)%
Third party sales(6) 138,500 136,200 82,800 74,000 133,400 4% 2% 431,500 453,100 (5)%
(1) Excludes copper production from the Platinum Group Metals business unit. Units shown are tonnes unless stated otherwise.
(2) Anglo American ownership interest of Los Bronces, El Soldado and the Chagres Smelter is 50.1%. Production is stated at 100% as Anglo American consolidates
these operations.
(3) TCu = total copper.
(4) Copper contained basis.
(5) Total copper production includes Anglo American's 44% interest in Collahuasi.
(6) Relates to sales of copper not produced by Anglo American operations.
Platinum Group Metals (PGMs)
Q4 2021 Q4 2021
PGMs (000 oz)(1) Q4 Q4 vs. Q3 vs. 2021 vs.
2021 2020 Q4 2020 2021 Q3 2021 2021 2020 2020
Metal in concentrate production 1,103 1,076 3% 1,116 (1)% 4,299 3,809 13%
Own mined(2) 734 717 2% 720 2% 2,858 2,549 12%
Purchase of concentrate (POC)(3) 369 359 3% 396 (7)% 1,440 1,260 14%
Refined production(4) 1,391 673 107% 1,420 (2)% 5,138 2,713 89%
(1) Ounces refer to troy ounces. PGMs is 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold).
(2) Includes managed operations and 50% of joint operation production.
(3) Includes the other 50% of joint operation production, as well as the purchase of concentrate from third parties.
(4) Refined production excludes toll refined material.
Metal in concentrate production
Own mined production increased by 2% to 734,200 ounces, primarily from a 15% increase at Amandelbult to 213,600
ounces, reflecting improved mining performance and increased stability at the concentrator. Production at Unki
increased by 13% to 63,200 ounces due to the successful completion of the debottlenecking project at the concentrator.
This was partially offset by performance at Mogalakwena and Mototolo, where lower grades were the primary drivers for
the production decreases of 2% and 18% respectively. Joint operations increased marginally by 1% to 99,700 ounces.
Purchase of concentrate increased by 3% to 369,200 ounces, primarily from third parties reflecting a recovery from the
impact of Covid-19 in Q4 2020.
Refined production
Refined production more than doubled to 1,391,300 ounces, reflecting continued strong performance from the ACP
Phase A unit following its successful start-up in November 2020. The build-up in work-in-progress inventory following the
temporary closure of the ACP in 2020 has largely been processed and refined. The ACP Phase B rebuild was completed
in January 2022 and will be recommissioned during Q1 2022.
Sales
Sales volumes increased by 70%, driven by higher refined production.
The full year average realised basket price of $2,761/PGM ounce primarily reflects the strong realised price for rhodium,
particularly in the first half of the year.
2022 Guidance
Production guidance (metal in concentrate) for 2022 is 4.1-4.5 million ounces(1). Refined production guidance for 2022 is
4.2-4.6 million ounces, subject to the potential impact of Eskom load-shedding. Both are subject to the extent of further
Covid-19 related disruption.
(1) Metal in concentrate production is expected to be 1.9-2.1 million ounces of platinum, 1.3-1.4 million ounces of palladium and 0.9-1.0 million ounces of
other PGMs and gold. With own-mined output accounting for ~65%.
Q4 2021 Q4 2021
Q4 Q3 Q2 Q1 Q4 vs. vs. 2021 vs.
2021 2021 2021 2021 2020 Q4 2020 Q3 2021 2021 2020 2020
M&C PGMs production (000 oz)(1) 1,103.4 1,116.2 1,057.9 1,021.2 1,076.1 3% (1)% 4,298.7 3,808.9 13%
Own mined 734.2 720.0 709.2 694.9 716.9 2% 2% 2,858.3 2,549.0 12%
Mogalakwena 300.8 276.4 308.3 329.1 306.7 (2)% 9% 1,214.6 1,181.6 3%
Amandelbult 213.6 218.3 185.3 156.0 185.5 15% (2)% 773.2 608.1 27%
Unki 63.2 42.6 47.9 50.9 55.8 13% 48% 204.6 196.1 4%
Mototolo 56.9 69.0 59.9 58.6 69.8 (18)% (18)% 244.4 223.6 9%
Joint operations(2) 99.7 113.7 107.8 100.3 99.1 1% (12)% 421.5 339.6 24%
Purchase of concentrate 369.2 396.2 348.7 326.3 359.2 3% (7% 1,440.4 1,259.9 14%
Joint operations(2) 99.7 113.7 107.8 100.3 99.0 1% (12)% 421.5 339.5 24%
Third parties 269.5 282.5 240.9 226.0 260.2 4% (5)% 1,018.9 920.4 11%
Refined PGMs production (000 oz)(1)(3) 1,391.3 1,420.4 1,353.7 973.0 673.1 107% (2)% 5,138.4 2,713.0 89%
By metal:
Platinum 653.5 662.9 625.7 457.8 296.4 120% (1)% 2,399.9 1,201.1 100%
Palladium 423.2 459.8 427.5 317.0 206.8 105% (8)% 1,627.5 905.4 80%
Rhodium 97.7 92.2 94.3 63.0 47.1 107% 6% 347.2 173.9 100%
Other PGMs and gold 216.9 205.5 206.2 135.2 122.8 77% 6% 763.8 432.6 77%
Nickel (tonnes) 5,700 6,000 5,800 4,800 3,700 54% (5)% 22,300 13,800 62%
Tolled material (000 oz)(4) 179.5 164.5 153.8 175.9 146.5 23% 9% 673.7 503.5 34%
PGMs sales from production (000 oz)(1)(5) 1,285.2 1,361.0 1,437.1 1,131.1 754.3 70% (6)% 5,214.4 2,868.5 82%
Third party PGMs sales (000 oz)(1)(6) 272.9 160.1 116.1 221.5 370.8 (26)% 70% 770.6 1,170.9 (34)%
4E head grade (g/t milled)(7) 3.49 3.47 3.48 3.54 3.67 (5)% 1% 3.50 3.56 (2)%
(1) M&C refers to metal in concentrate. Ounces refer to troy ounces. PGMs is 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold).
(2) The joint operations are Modikwa and Kroondal. Platinum owns 50% of these operations, which is presented under 'Own mined' production, and purchases
the remaining 50% of production, which is presented under 'Purchase of concentrate'.
(3) Refined production excludes toll material.
(4) Ounces refer to troy ounces. Tolled volume measured as the combined content of: platinum, palladium, rhodium and gold, reflecting the tolling agreements in place.
(5) PGMs sales volumes from production are generally ~65% own mined and ~35% purchases of concentrate though this may vary from quarter to quarter.
(6) Relates to sales of metal not produced by Anglo American operations.
(7) 4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold, excludes tolled material. Minor metals are excluded due to variability.
Iron Ore
Q4 2021 Q4 2021
Iron Ore (000 t) Q4 Q4 vs. Q3 vs. 2021 vs.
2021 2020 Q4 2020 2021 Q3 2021 2021 2020 2020
Iron Ore(1) 15,051 16,183 (7)% 16,888 (11)% 63,808 61,702 3%
Kumba(2) 9,701 9,718 0% 10,789 (10)% 40,862 37,621 9%
Minas-Rio(3) 5,350 6,466 (17)% 6,100 (12)% 22,945 24,082 (5)%
(1) Total iron ore is the sum of Kumba and Minas-Rio.
(2) Volumes are reported as wet metric tonnes. Product is shipped with ~1.6% moisture.
(3) Volumes are reported as wet metric tonnes. Product is shipped with ~9% moisture.
Iron ore production in the fourth quarter decreased by 7% to 15.1 million tonnes, driven by a 17% decrease at Minas-Rio,
while Kumba's production was in line with the prior year.
Kumba - Total production was in line with the prior year at 9.7 million tonnes, reflecting broadly flat production of 3.2
million tonnes at Kolomela and 6.5 million tonnes at Sishen. Production was limited by higher stock levels at the mines as
a result of the third party rail performing below planned levels earlier in the year, as well as the impact of the Q4 annual
shut-down for rail and port maintenance.
Total sales of 10.7 million tonnes(1) increased by 4% due to improved equipment reliability and throughput at the
Saldanha port.
For the full year, Kumba's iron (Fe) content averaged 64.1% (2020: 64.3%), while the average lump:fines ratio increased
to 69:31 (2020: 68:32).
Kumba achieved a full year average realised price of $161/tonne (FOB South Africa, wet basis), 18% above the 62% Fe
benchmark price of $136/tonne (FOB South Africa, adjusted for freight and moisture) due to the lump and Fe content
quality premiums that the Kumba products attract, partially offset by the timing on provisionally priced volumes.
Minas-Rio - Production decreased by 17% to 5.3 million tonnes primarily due to lower plant availability, impacted by
unplanned maintenance and heavy rainfall experienced during the quarter.
The full year average realised price of $150/tonne (FOB Brazil, wet basis) was higher than the Metal Bulletin 66 price of
$142/tonne (FOB Brazil, adjusted for freight and moisture), reflecting the premium quality of the product, including higher
(~67%) Fe content, partially offset by the timing on provisionally priced volumes.
2022 Guidance
Production guidance (wet basis) for 2022 is 63-67 million tonnes (Kumba 39-41 million tonnes; Minas-Rio 24-26 million
tonnes). Both are subject to the extent of further Covid-19 related disruption and Kumba is subject to the third party rail
and port performance.
(1) Sales volumes are reported on a wet basis and differ to Kumba's standalone results due to sales to other Group companies.
Q4 2021 Q4 2021
Iron Ore (tonnes) Q4 Q3 Q2 Q1 Q4 vs. vs. 2021 vs.
2021 2021 2021 2021 2020 Q4 2020 Q3 2021 2021 2020 2020
Iron Ore production(1) 15,050,800 16,888,100 15,695,300 16,173,400 16,183,200 (7)% (11)% 63,807,600 61,702,100 3%
Iron Ore sales(1) 16,775,700 15,818,800 14,973,600 15,716,400 16,600,200 1% 6% 63,284,500 64,241,100 (1)%
Kumba production 9,701,300 10,788,600 9,817,600 10,554,700 9,717,600 0% (10)% 40,862,200 37,620,600 9%
Lump 6,419,900 7,252,800 6,723,700 7,156,100 6,589,100 (3)% (11)% 27,552,500 25,478,300 8%
Fines 3,281,400 3,535,800 3,093,900 3,398,600 3,128,500 5% (7)% 13,309,700 12,142,300 10%
Kumba production by mine
Sishen 6,538,200 7,528,300 6,876,800 7,071,200 6,583,400 (1)% (13)% 28,014,500 25,764,000 9%
Kolomela 3,163,100 3,260,300 2,940,800 3,483,500 3,134,200 1% (3)% 12,847,700 11,856,600 8%
Kumba sales volumes(2) 10,690,300 9,965,700 9,406,000 10,230,200 10,285,700 4% 7% 40,292,200 40,449,200 0%
Export iron ore(2) 10,690,300 9,965,700 9,406,000 10,123,100 10,285,700 4% 7% 40,185,100 40,091,500 0%
Domestic iron ore - - - 107,100 - n/a n/a 107,100 357,700 (70)%
Minas-Rio production
Pellet feed (wet basis) 5,349,500 6,099,500 5,877,700 5,618,700 6,465,600 (17)% (12)% 22,945,400 24,081,500 (5)%
Minas-Rio sales volumes
Export - pellet feed (wet basis) 6,085,400 5,853,100 5,567,600 5,486,200 6,314,500 (4)% 4% 22,992,300 23,791,900 (3)%
(1) Total iron ore is the sum of Kumba and Minas-Rio and reported in wet metric tonnes. Kumba product is shipped with ~1.6% moisture and Minas-Rio product
is shipped with ~9% moisture.
(2) Sales volumes differ to Kumba's standalone results due to sales to other Group companies.
Metallurgical Coal
Q4 2021 Q4 2021
Metallurgical Coal(1) (000 t) Q4 Q4 vs. Q3 vs. 2021 vs.
2021 2020 Q4 2020 2021 Q3 2021 2021 2020 2020
Metallurgical Coal 4,372 4,182 5% 4,289 2% 14,908 16,822 (11)%
(1) Anglo American's attributable share of production.
Export metallurgical coal production increased by 5% to 4.4 million tonnes reflecting the increase in production at
Dawson, having scaled back production since mid-2020 in response to reduced demand. This was partially offset by
operations at Moranbah being impacted by challenging geological conditions for most of the quarter and operating time
being limited at the open cut operations by above average rainfall.
At Grosvenor, development activities have progressed well and the longwall is operationally ready for recommencement
in Q1 2022, subject to approval from the Queensland Regulator.
The ratio of hard coking coal production to PCI/semi-soft coking coal was 67:33, lower than in Q4 2020 (77:23), due to
lower volumes of premium quality hard coking coal from Moranbah and higher volumes of PCI coal from the open cut
mines at Dawson.
The full year average realised price for hard coking coal was $211/tonne, as usual this was lower than the full year index
price of $226/tonne, but the price realisation increased to 93% (2020: 90%) as a result of higher sales volumes from
Moranbah in the second half of the year, in a higher price environment.
2022 Guidance
Production guidance for 2022 is 20-22 million tonnes, subject to the extent of further Covid-19 related disruptions and
regulatory approval to restart the Grosvenor longwall mining operations.
Q4 2021 Q4 2021
Coal, by product (tonnes)(1) Q4 Q3 Q2 Q1 Q4 vs. vs. 2021 vs.
2021 2021 2021 2021 2020 Q4 2020 Q3 2021 2021 2020 2020
Production volumes
Metallurgical Coal 4,372,100 4,288,500 2,968,600 3,278,500 4,182,400 5% 2% 14,907,700 16,821,900 (11)%
Hard Coking Coal 2,922,400 3,567,400 2,319,500 2,511,200 3,221,200 (9)% (18)% 11,320,500 13,424,000 (16)%
PCI / SSCC 1,449,700 721,100 649,100 767,300 961,200 51% 101% 3,587,200 3,397,900 6%
Export thermal Coal 341,800 443,800 519,000 372,400 562,300 (39)% (23)% 1,677,000 2,020,500 (17)%
Sales volumes
Metallurgical Coal 4,182,400 3,985,800 2,856,300 3,112,300 4,318,300 (3)% 5% 14,136,800 16,887,900 (16)%
Hard Coking Coal 2,793,500 3,293,600 2,246,200 2,462,100 3,536,900 (21)% (15)% 10,795,400 13,839,300 (22)%
PCI / SSCC 1,388,900 692,200 610,100 650,200 781,400 78% 101% 3,341,400 3,048,600 10%
Export thermal Coal 483,800 560,400 572,000 492,000 725,800 (33)% (14)% 2,108,200 2,284,800 (8)%
(1) Anglo American's attributable share of production.
Metallurgical coal, by Q4 2021 Q4 2021
operation (tonnes)(1) Q4 Q3 Q2 Q1 Q4 vs. vs. 2021 vs.
2021 2021 2021 2021 2020 Q4 2020 Q3 2021 2021 2020 2020
Metallurgical Coal 4,372,100 4,288,500 2,968,600 3,278,500 4,182,400 5% 2% 14,907,700 16,821,900 (11)%
Moranbah 1,084,300 1,314,700 56,600 595,100 1,209,200 (10)% (18)% 3,050,700 4,430,300 (31)%
Grosvenor 52,100 19,500 - - - n/a 167% 71,600 1,106,300 (94)%
Capcoal (incl. Grasstree) 1,588,700 1,503,500 1,554,100 1,346,600 1,680,900 (5)% 6% 5,992,900 5,614,900 7%
Dawson 654,100 659,200 569,800 600,600 461,200 42% (1)% 2,483,700 2,429,100 2%
Jellinbah 802,200 791,600 788,100 736,200 831,100 (3)% 1% 3,118,100 3,241,300 (4)%
Other 190,700 - - - - n/a n/a 190,700 - n/a
(1) Anglo American's attributable share of production.
Nickel
Q4 2021 Q4 2021
Nickel (tonnes) Q4 Q4 vs. Q3 vs. 2021 vs.
2021 2020 Q4 2020 2021 Q3 2021 2021 2020 2020
Nickel 10,600 11,700 (9)% 10,400 2% 41,700 43,500 (4)%
Nickel production decreased by 9% to 10,600 tonnes, due to licensing delays (received in late Q4) and heavy rainfall
experienced in the quarter, which has resulted in lower grade ore from stockpiles being fed into the plant.
2022 Guidance
Production guidance for 2022 is 40,000-42,000 tonnes, subject to the extent of further Covid-19 related disruptions.
Q4 2021 Q4 2021
Nickel (tonnes) Q4 Q3 Q2 Q1 Q4 vs. vs. 2021 vs.
2021 2021 2021 2021 2020 Q4 2020 Q3 2021 2021 2020 2020
Barro Alto
Ore mined 719,300 1,190,900 976,200 628,500 1,001,600 (28)% (40)% 3,514,900 4,197,900 (16)%
Ore processed 654,400 564,400 641,500 616,700 628,000 4% 16% 2,477,000 2,400,600 3%
Ore grade processed - %Ni 1.50 1.64 1.56 1.53 1.71 (12)% (9)% 1.55 1.65 (6)%
Production 8,600 8,300 8,800 8,200 9,500 (9)% 4% 33,900 34,900 (3)%
Codemin
Ore mined - - - - - n/a n/a - 3,200 n/a
Ore processed 141,700 146,800 136,400 136,600 147,600 (4)% (3)% 561,500 581,300 (3)%
Ore grade processed - %Ni 1.57 1.60 1.52 1.51 1.71 (8)% (2)% 1.55 1.66 (7)%
Production 2,000 2,100 1,800 1,900 2,200 (9)% (5)% 7,800 8,600 (9)%
Total Nickel production(1) 10,600 10,400 10,600 10,100 11,700 (9)% 2% 41,700 43,500 (4)%
Sales volumes 10,400 11,700 9,800 10,200 11,700 (11)% (11)% 42,100 43,000 (2)%
(1) Excludes nickel production from the Platinum Group Metals business unit.
Manganese
Q4 2021 Q4 2021
Manganese (000 t) Q4 Q4 vs. Q3 vs. 2021 vs.
2021 2020 Q4 2020 2021 Q3 2021 2021 2020 2020
Manganese ore(1) 835 942 (11)% 1,004 (17)% 3,683 3,520 5%
Manganese alloys(1)(2) - 15 n/a - n/a - 81 n/a
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
Manganese ore production decreased by 11% to 834,600 tonnes, primarily due to planned lower yield from the area
mined and the impact of Covid-19 related disruptions at the Australian operation.
There was no manganese alloy production as the South African smelter has been on care and maintenance since the
Covid-19 lockdown in 2020. During Q4 2021, an agreement was entered into to divest the Metalloys business and that
transaction is expected to complete during 2022.
Q4 2021 Q4 2021
Manganese (tonnes) Q4 Q3 Q2 Q1 Q4 vs. vs. 2021 vs.
2021 2021 2021 2021 2020 Q4 2020 Q3 2021 2021 2020 2020
Samancor production
Manganese ore(1) 834,600 1,003,600 940,500 904,500 942,400 (11)% (17)% 3,683,200 3,520,000 5%
Manganese alloys(1)(2) - - - - 14,600 n/a n/a - 80,500 n/a
Samancor sales
volumes
Manganese ore 940,200 947,200 980,200 878,200 936,800 0% (1)% 3,745,800 3,529,100 6%
Manganese alloys - - - 670 24,500 n/a n/a 670 103,400 n/a
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
Exploration and evaluation
Exploration and evaluation expenditure increased by 26% to $102 million. Exploration expenditure increased by 47% to
$47 million driven, by increased activity in copper, nickel, PGMs and iron ore, reflecting recovery from the Covid-19
disruptions in Q4 2020, in most drilling locations. Evaluation expenditure increased by 12% to $55 million, with increased
spend in PGMs and metallurgical coal.
Corporate and other activities
During the second half of the year we completed our $100 million donation to the Anglo American Foundation as a
special endowment to fund sustainability projects, this will be reported in our central costs for the year.
Following the demerger of the South Africa thermal coal operations on 4 June 2021, full year underlying EBITDA for these
operations will be equivalent to the reported first half EBITDA of $101m.
The sale of Anglo American's 33% interest in Cerrejon was announced on 28 June 2021, and has subsequently
completed on 11 January 2022 following receipt of the relevant regulatory approvals. The agreement is effective on
31 December 2020 and, therefore, economic benefits from 1 January 2021 until completion have not accrued to Anglo American.
Full year underlying EBITDA for Anglo American's share of Cerrejon will be equivalent to the reported first half EBITDA of
$87m. The second half EBITDA will be reported in Special items and remeasurements (Note 8 in the Annual Report),
rather than underlying earnings. Dividends received from Cerrejon will be reported in "Dividends from associates and joint
ventures"(1). Furthermore, the purchase consideration for our interest in Cerrejon was subject to completion adjustments,
which included an adjustment for dividends paid by Cerrejon to Anglo American during the period after 31 December
2020 to the completion date of 11 January 2022.
In our investor update presentation on 10 December 2021, we indicated that dividends paid to non-controlling interests
for 2021 were equal to ~$2.8bn.
(1) In the Net Debt reconciliation table, the dividends received in H2 2021 will be included in "other net debt movements".
For more information on Anglo American's announcements during the period, please find a link to our Press Releases below:
https://www.angloamerican.com/media/press-releases/2021 and https://www.angloamerican.com/media/press-releases/2022
Notes
- This Production Report for the quarter ended 31 December 2021 is unaudited.
- Production figures are sometimes more precise than the rounded numbers shown in this Production Report.
- Copper equivalent production shows changes in underlying production volume. It is calculated by expressing each
product's volume as revenue, subsequently converting the revenue into copper equivalent units by dividing by the
copper price (per tonne). Long-term forecast prices are used, in order that period-on-period comparisons exclude any
impact for movements in price.
- Please refer below for information on forward-looking statements.
In this document, references to "Anglo American", the "Anglo American Group", the "Group", "we", "us", and "our" are to
refer to either Anglo American plc and its subsidiaries and/or those who work for them generally, or where it is not
necessary to refer to a particular entity, entities or persons. The use of those generic terms herein is for convenience only,
and is in no way indicative of how the Anglo American Group or any entity within it is structured, managed or controlled.
Anglo American subsidiaries, and their management, are responsible for their own day-to-day operations, including but
not limited to securing and maintaining all relevant licences and permits, operational adaptation and implementation of
Group policies, management, training and any applicable local grievance mechanisms. Anglo American produces
group-wide policies and procedures to ensure best uniform practices and standardisation across the Anglo American
Group but is not responsible for the day to day implementation of such policies. Such policies and procedures constitute
prescribed minimum standards only. Group operating subsidiaries are responsible for adapting those policies and
procedures to reflect local conditions where appropriate, and for implementation, oversight and monitoring within their
specific businesses.
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Paul Galloway
james.wyatt-tilby@angloamerican.com paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 8718
Marcelo Esquivel Juliet Newth
marcelo.esquivel@angloamerican.com juliet.newth@angloamerican.com
Tel: +44 (0)20 7968 8891 Tel: +44 (0)20 7968 8830
Katie Ryall Michelle Jarman
katie.ryall@angloamerican.com michelle.jarman@angloamerican.com
Tel: +44 (0)20 7968 8935 Tel: +44 (0)20 7968 1494
South Africa
Nevashnee Naicker
nevashnee.naicker@angloamerican.com
Tel: +27 (0)11 638 3189
Sibusiso Tshabalala
sibusiso.tshabalala@angloamerican.com
Tel: +27 (0)11 638 2175
Notes to editors:
Anglo American is a leading global mining company and our products are the essential ingredients in almost every
aspect of modern life. Our portfolio of world-class competitive operations, with a broad range of future development
options, provides many of the future-enabling metals and minerals for a cleaner, greener, more sustainable world and
that meet the fast growing every day demands of billions of consumers. With our people at the heart of our business, we
use innovative practices and the latest technologies to discover new resources and to mine, process, move and market
our products to our customers - safely and sustainably.
As a responsible producer of diamonds (through De Beers), copper, platinum group metals, premium quality iron ore and
metallurgical coal for steelmaking, and nickel - with crop nutrients in development - we are committed to being carbon
neutral across our operations by 2040. More broadly, our Sustainable Mining Plan commits us to a series of stretching
goals to ensure we work towards a healthy environment, creating thriving communities and building trust as a corporate
leader. We work together with our business partners and diverse stakeholders to unlock enduring value from precious
natural resources for the benefit of the communities and countries in which we operate, for society as a whole, and for our
shareholders. Anglo American is re-imagining mining to improve people's lives.
Forward-looking statements and third-party information:
This announcement includes forward-looking statements. All statements other than statements of historical facts included in this
announcement, including, without limitation, those regarding Anglo American's financial position, business, acquisition and divestment
strategy, dividend policy, plans and objectives of management for future operations (including development plans and objectives
relating to Anglo American's products, production forecasts and Ore Reserves and Mineral Resource estimates) and environmental,
social and corporate governance goals and aspirations, are forward-looking statements. By their nature, such forward-looking
statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or
achievements of Anglo American, or industry results, to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements.
Such forward-looking statements are based on numerous assumptions regarding Anglo American's present and future business
strategies and the environment in which Anglo American will operate in the future. Important factors that could cause Anglo
American's actual results, performance or achievements to differ materially from those in the forward-looking statements include,
among others, levels of actual production during any period, levels of global demand and commodity market prices, mineral resource
exploration and development capabilities, recovery rates and other operational capabilities, safety, health or environmental incidents,
the effects of global pandemics and outbreaks of infectious diseases, the outcome of litigation or regulatory proceedings, the
availability of mining and processing equipment, the ability to produce and transport products profitably, the availability of
transportation infrastructure, the impact of foreign currency exchange rates on market prices and operating costs, the availability of
sufficient credit, the effects of inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of
competitors, activities by courts, regulators and governmental authorities such as in relation to permitting or forcing closure of mines
and ceasing of operations or maintenance of Anglo American's assets and changes in taxation or safety, health, environmental or
other types of regulation in the countries where Anglo American operates, conflicts over land and resource ownership rights and such
other risk factors identified in Anglo American's most recent Annual Report. Forward-looking statements should, therefore, be
construed in light of such risk factors and undue reliance should not be placed on forward-looking statements.
These forward-looking statements speak only as of the date of this announcement. Anglo American expressly disclaims any obligation
or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers, the UK Listing Rules, the Disclosure
and Transparency Rules of the Financial Conduct Authority, the Listings Requirements of the securities exchange of the JSE Limited in
South Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other applicable
regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in
Anglo American's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement
is based. Nothing in this announcement should be interpreted to mean that future earnings per share of Anglo American will
necessarily match or exceed its historical published earnings per share.
Certain statistical and other information about Anglo American included in this announcement is sourced from publicly available third-
party sources. As such, it has not been independently verified and presents the views of those third parties, though these may not
necessarily correspond to the views held by Anglo American and Anglo American expressly disclaims any responsibility for, or liability in
respect of, such information.
Legal Entity Identifier: 549300S9XF92D1X8ME43
The Company has a primary listing on the Main Market of the London Stock Exchange and secondary listings on the Johannesburg Stock Exchange,
the Botswana Stock Exchange, the Namibia Stock Exchange and the SIX Swiss Exchange.
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
27 January 2022
Date: 27-01-2022 09:00:00
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